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COUNTRY COMMENTS BY JERRY STOWELL CATTLE By: Jerry Stowell At 11:29, Live Cattle Feb LC are trading 40 to 70 higher, while Feeders are trading 125 to 45 higher. Noon Beef saw choice up 58 at 138.48, while select was up 91 at 136.37. Volume was 148 loads. The latest Feeder Index was 98.43 up 4. We expect that Index to rise 38 points tonight to the 98.81 area. Cash Fed asking prices are starting the week out at 89 south and 89 & 142 north. Futures and cash confirmed last week to us that they are ready to trade higher over the next few weeks. Demand remains very slow for high end rib items at this time but winter weather has offset supply the past several weeks while overall numbers of Fed Cattle were adequate. Actual numbers of Fed Cattle will drop from February into March forcing packers to harvest cattle In the red. We see 93-94 as upside potential in the April LC contract. If you need to be short use the August LC contract as it should rally the least. GRAINSGrains Update by Darrell Holaday We have seen the strongest short covering rally since the January report in the grains today, but it has already show signs of weakening. The move up has been lead by the soybean complex on the back of ideas that the Supply/Demand projections may be supportive tomorrow with an increase in US soybean exports expected. The problem is that South American production numbers will also likely be increased. A weaker US dollar has been supportive to the grains, but ahead of the report the market was very choppy early with almost a panic buying short covering rally. We had recommended re-selling the short March corn that we covered last week at $3.54. The $3.62 level was the high today and we resold all of that corn. We are now recommending orders to buy back that corn at $3.45 on March. Outside markets are generally a little better after sharp selloffs Friday. Still a lot of nervousness about Europe in the credit markets. At mid-day corn is up .06 (after being up .10 in the first hour of trade), soybeans up .20 and wheat is up .09. THE DATA CONTAINED HEREIN IS BELIEVED TO BE DRAWN FROM RELIABLE SOURCES BUT CANNOT BE GUARANTEED, NEITHER THE INFORMATION PRESENTED NOR ANY OPINIONS EXPRESSED CONSTITUTE A SOLICITATION OF THE PURCHASE OF SALE OF ANY COMMODITY. THOSE INDIVIDUALS ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. COMMODITY TRADING MAY NOT BE SUITABLE FOR ALL RECIPIENTS OF THIS REPORT. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL. EACH INVESTOR MUST CONSIDER WHETHER THIS IS A SUITABLE INVESTMENT. ALL RECOMMENDATIONS ARE SUBJECT TO CHANGE AT ANY TIME. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
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